From the title of my post....I sound ungrateful, but I'm not. I'm thrilled!!! CALHFA is a program which helps first time home buyers of California with a 3% deferred loan to be used for the down payment. When used in combination with the FHA loans.....a first time buyer can now qualify to buy a home with only 1/2 % of the purchase price.
(FHA requires a 3.5% down payment......3% of that can be from the CALHFA program)
The mortgage industry calls this a silent second. This is a lien on the property, but the borrower makes no payments on this loan until they refinance or sell the property. So it just sits "silently." Because the FHA allows closing costs to be paid by the seller....this gives an opportunity to many more first time home buyers.
http://www.calhfa.ca.gov/whatsnew.htm
This is a bond-funded program....and there are several others too. Take a look at the link above for more information.
Saturday, May 23, 2009
Thursday, May 21, 2009
And The Bank Held Out For Less Money.....Short Sale Idiocy
Last August....yes, August....I took a listing for a short sale. I had my appraiser give the property the "once over" and priced it competitively at $149,900. I had numerous buyers the first week. One was for $165,000 and all cash. Yippee!!! This was ready to go in November. The bank should be thrilled!
They weren't!
The bank did it's own appraisal and it came in at the $149,000 that we had listed....we had a cash buyer ready to go at $165,000....they should be thrilled!
They weren't!
The bank wanted the seller to "take some responsibility" and take a note for $20,000. The seller said "no." We went back and forth with the bank and eventually got them down to $5000 note. By this time the buyer was gone, and prices had dropped.
I put it back on the market in December and it sat and sat, comps went down and down. We finally found a new buyer in March. For $125,000. By this time the seller had received his notice of default and sale date. He saw no reason to sign a note. He was tired and annoyed. I agreed with him. The buyer did want the home and offered an additional $2000 to the bank in lieu of the seller's note.
They agreed!
The bank "stuck to it's guns" and held out for less!!!!
I hope they are thrilled!
They weren't!
The bank did it's own appraisal and it came in at the $149,000 that we had listed....we had a cash buyer ready to go at $165,000....they should be thrilled!
They weren't!
The bank wanted the seller to "take some responsibility" and take a note for $20,000. The seller said "no." We went back and forth with the bank and eventually got them down to $5000 note. By this time the buyer was gone, and prices had dropped.
I put it back on the market in December and it sat and sat, comps went down and down. We finally found a new buyer in March. For $125,000. By this time the seller had received his notice of default and sale date. He saw no reason to sign a note. He was tired and annoyed. I agreed with him. The buyer did want the home and offered an additional $2000 to the bank in lieu of the seller's note.
They agreed!
The bank "stuck to it's guns" and held out for less!!!!
I hope they are thrilled!
Friday, May 1, 2009
Hello Buyer!!! Why It's OK to "Window Shop"
I call it "window shopping"! In the truest sense of the term, you are in fact shopping for windows...and doors...and floors...and kitchens...Ok, you get the point! In my business plan, I include time to take clients who are not ready/prepared to buy out to see homes and neighborhoods. This is not only first-time buyers....this market can be scary!
I think the industry as a whole now understands that buyers are more educated than ever. They use the Internet to do much of the research. Sure they can get a list of available homes and recent sales....but without the context of seeing these homes, this information is numbers. Drive-bys are helpful as well....but an afternoon spent with a Realtor looking at homes with the background information and comps is an education that can't be gained on the Internet.
I have a database full of these future buyers. I don't use the normal "drip" email system of sending 1 or 2 lisitings as they pop-up. I use a gateway website...here is a sample site:
http://socallistings.marketlinx.com/portal/?PID=1176885&MID=SPARSKAR
This site allows the future buyer to capture, sort, save and make notes on listings all in one place. These listings come directly from the MLS so nothing is missed. When you are "window shopping" this is a great way to start watching the market. You will be able to watch prices...are they going down? up? are there more listings that fit your criteria? less? This is great information!!! All in one place!
The Real Estate Market is changing every day...if you aren't ready to jump right now....find a Realtor to help you prepare! Go see a few homes, check out the neighborhoods and do some "window shopping."
I think the industry as a whole now understands that buyers are more educated than ever. They use the Internet to do much of the research. Sure they can get a list of available homes and recent sales....but without the context of seeing these homes, this information is numbers. Drive-bys are helpful as well....but an afternoon spent with a Realtor looking at homes with the background information and comps is an education that can't be gained on the Internet.
I have a database full of these future buyers. I don't use the normal "drip" email system of sending 1 or 2 lisitings as they pop-up. I use a gateway website...here is a sample site:
http://socallistings.marketlinx.com/portal/?PID=1176885&MID=SPARSKAR
This site allows the future buyer to capture, sort, save and make notes on listings all in one place. These listings come directly from the MLS so nothing is missed. When you are "window shopping" this is a great way to start watching the market. You will be able to watch prices...are they going down? up? are there more listings that fit your criteria? less? This is great information!!! All in one place!
The Real Estate Market is changing every day...if you aren't ready to jump right now....find a Realtor to help you prepare! Go see a few homes, check out the neighborhoods and do some "window shopping."
Saturday, April 4, 2009
California Association of Realtors Mortgage Protection Program: CAR Will Pay the Mortgage
Just announced this week by the California Association of REALTORSis a new Mortgage Protection Program. This program will be administered by the California Association of REALTORS Housing Affordability Fund (CARHAF) and will pay the mortgage payment up to $1500/month if a home buyer loses their job or accidental disability or death. There is also a one-time accidental death benefit of $10,000.
This is offered at no cost to the home buyer and the application is handled by the REALTOR as part of the transaction. To be eligible you must:
1) Be a first-time home buyer who hasn't owned a home in the last three years
2) Open escrow after 4/2/09 and close before 12/31/09
3) Property must be a primary residence in California
4) Be represented by a California REALTOR
5) Be a W-2 employee (Self-employed, sole proprietor, partner, etc will not qualify)
There are no income requirements or limits. Coverage takes effect 6 months after the close of escrow and is subject to a one month wait period after unemployment.
To get full information on this program...please contact me at info@great-western-realty.com
www.great-western-realty.com
This is offered at no cost to the home buyer and the application is handled by the REALTOR as part of the transaction. To be eligible you must:
1) Be a first-time home buyer who hasn't owned a home in the last three years
2) Open escrow after 4/2/09 and close before 12/31/09
3) Property must be a primary residence in California
4) Be represented by a California REALTOR
5) Be a W-2 employee (Self-employed, sole proprietor, partner, etc will not qualify)
There are no income requirements or limits. Coverage takes effect 6 months after the close of escrow and is subject to a one month wait period after unemployment.
To get full information on this program...please contact me at info@great-western-realty.com
www.great-western-realty.com
Saturday, March 21, 2009
Start Watching the Real Estate Market: A Free Listing Website Set up Just for YOU!
Buyer's and Sellers!
If you're in Southern California...this post is for you!
Regardless of which category you fall into.....I have a system which will help you educate yourself on the real estate market you are actually IN! Unlike the major online search websites....this site will be geared to your specifications and give you real-time notifications of new listings, solds and pending sales. You no longer have to guess if a home price you see online is real! This comes directly from the MLS.
On this site...I will imput your search criteria. If you are a home seller...we will enter the comparable homes to the search. You can begin to watch home values....see all the homes that are currently listed and what the price is. You can see pictures and other important information as well. You can also go in and sort these listings, make comments, and even send them directly to me for more information.
This information comes directly from the Multiple Listing Service...the same system the realtors use...and so you will have the most current information available.
This is a link to a sample site...loaded with a Mission Viejo search. If you would like one for your specific needs....please email/call me and I'll set one up for you too!
http://socallistings.marketlinx.com/portal/?PID=1176885&MID=SPARSKAR
Karen
KarenFiddler@great-western-realty.com
www.great-western-realty.com
If you're in Southern California...this post is for you!
Regardless of which category you fall into.....I have a system which will help you educate yourself on the real estate market you are actually IN! Unlike the major online search websites....this site will be geared to your specifications and give you real-time notifications of new listings, solds and pending sales. You no longer have to guess if a home price you see online is real! This comes directly from the MLS.
On this site...I will imput your search criteria. If you are a home seller...we will enter the comparable homes to the search. You can begin to watch home values....see all the homes that are currently listed and what the price is. You can see pictures and other important information as well. You can also go in and sort these listings, make comments, and even send them directly to me for more information.
This information comes directly from the Multiple Listing Service...the same system the realtors use...and so you will have the most current information available.
This is a link to a sample site...loaded with a Mission Viejo search. If you would like one for your specific needs....please email/call me and I'll set one up for you too!
http://socallistings.marketlinx.com/portal/?PID=1176885&MID=SPARSKAR
Karen
KarenFiddler@great-western-realty.com
www.great-western-realty.com
Friday, March 20, 2009
Open Letter to Home Buyers
Dear Future Home Buyer,Wow...interesting times out there! Short sales, foreclosures, changing loan programs....it's so hard to know what to do. Is this the right time to buy? Or should you wait? Where should you go to find answers.
If you are reading this, you already know there are many websites which are available to give you some insight. You can now find home listings, mortgage rates and even your credit report online. But what you still need to know is how to put all this information together to build a coherent plan of attack. A good buyer's agent can help you do this. And a buyer's agent represents you free of charge. Their commissions are paid by the seller.
A buyer's agent is not someone who necessarily rejects real estate listings, but in your case will be someone who is representing YOU and only YOU. This is not someone who is representing both buyer and seller in the same deal. That, in my opinion, is a recipe for trouble...and something I never do.
A buyer's agent will help bring a team of experts together to work with you depending on your needs. This might include a tax consultant, a mortgage broker, and/or a credit counselor. It will certainly involve a comprehensive discussion of your home needs. You will explore cities, size of home, community amenities, school districts, resale values...all the things that should go into an educated home purchase.
This can be done in various ways. I like to set up a custom website for each buyer and load it with a personal search. Using this site, you will receive all the listings directly from the MLS which suit your criteria. On this site, you can save, sort and make comments on the listings...and send them directly to me by email if you have specific questions....or see something you'd like to view. Once we develop a working list...we can go see them.
This is all the things you would expect a real estate agent to do for you....but do you know what happens after you find the perfect home?
During escrow...your buyer's agent is there for you too! We not only negotiate the price in the offer, but represent you during the escrow period too. You will have a home inspection. There might be repairs needed. Although most listings now say "as-is" even banks recognize that sometimes making repairs for a buyer ready to close is better than holding firm and risk starting from scratch with a new buyer. Especially if the problem is severe.
A good example is mold. Most banks, regardless of whether it's a short sale or foreclosure, will address a mold problem. Once they have been made aware of the existence of mold, they must disclose it to every new buyer...they might as well handle it with us. There are other major problems that can be addressed in a bank approval situation too. If we are working with a seller with equity...there is even more room to negotiate repairs, or credits, to handle problems with the home condition.
Other issues which might occur during escrow include insurance quotes, appraisal problems, title discrepancies. All situations your buyer's agent is prepared for, and experienced in solving. Can all problems be solved? of course not...but your agent will have the experience and resources to guide you during the entire process.
In short....if you are ready to buy a new home, or if you are ready to THINK about buying a new home. Start talking to a buyer's agent.
Good luck with your new home purchase and we are here to help when you are ready.
Karen
www.great-western-realty.com
If you are reading this, you already know there are many websites which are available to give you some insight. You can now find home listings, mortgage rates and even your credit report online. But what you still need to know is how to put all this information together to build a coherent plan of attack. A good buyer's agent can help you do this. And a buyer's agent represents you free of charge. Their commissions are paid by the seller.
A buyer's agent is not someone who necessarily rejects real estate listings, but in your case will be someone who is representing YOU and only YOU. This is not someone who is representing both buyer and seller in the same deal. That, in my opinion, is a recipe for trouble...and something I never do.
A buyer's agent will help bring a team of experts together to work with you depending on your needs. This might include a tax consultant, a mortgage broker, and/or a credit counselor. It will certainly involve a comprehensive discussion of your home needs. You will explore cities, size of home, community amenities, school districts, resale values...all the things that should go into an educated home purchase.
This can be done in various ways. I like to set up a custom website for each buyer and load it with a personal search. Using this site, you will receive all the listings directly from the MLS which suit your criteria. On this site, you can save, sort and make comments on the listings...and send them directly to me by email if you have specific questions....or see something you'd like to view. Once we develop a working list...we can go see them.
This is all the things you would expect a real estate agent to do for you....but do you know what happens after you find the perfect home?
During escrow...your buyer's agent is there for you too! We not only negotiate the price in the offer, but represent you during the escrow period too. You will have a home inspection. There might be repairs needed. Although most listings now say "as-is" even banks recognize that sometimes making repairs for a buyer ready to close is better than holding firm and risk starting from scratch with a new buyer. Especially if the problem is severe.
A good example is mold. Most banks, regardless of whether it's a short sale or foreclosure, will address a mold problem. Once they have been made aware of the existence of mold, they must disclose it to every new buyer...they might as well handle it with us. There are other major problems that can be addressed in a bank approval situation too. If we are working with a seller with equity...there is even more room to negotiate repairs, or credits, to handle problems with the home condition.
Other issues which might occur during escrow include insurance quotes, appraisal problems, title discrepancies. All situations your buyer's agent is prepared for, and experienced in solving. Can all problems be solved? of course not...but your agent will have the experience and resources to guide you during the entire process.
In short....if you are ready to buy a new home, or if you are ready to THINK about buying a new home. Start talking to a buyer's agent.
Good luck with your new home purchase and we are here to help when you are ready.
Karen
www.great-western-realty.com
Wednesday, March 18, 2009
Home Buying Process, or home buying for dummies :)
I'm finding that many buyers are uneducated about the home buying process. Just look at the questions on Zillow or Trulia and read behind the lines....you see uncertainty and nervousness. I hold first-time home buyer workshops several times a year in my local area, but you don't have to be a first time home buyer to need information. This is the handout I use at that workshop about the steps we take to purchase a new home:
Home Buying Process
Step One: Indentify Properties of Interest and Go See Them
1)Preview properties online and on MLS Gateway Website
2)Identify properties that appear to fit criteria
3)Get Financial details and listing background
Step Two: Write Offers on One or More Possible Homes
1)Write offers with no deposit or obligation
2)Recieve counter offers and give them our response
3)Come to an agreement on one great home, or keep looking
Step Three: Open Escrow
1) We are assigned an escrow officer and number
2)Deposit check will be sent to escrow
Step Four: Contingency Period (17 Days) time to explore details of the home
1) Home Inspection
2)Loan Approval
3)Appraisal
4) Seller Disclosures
5) Home Owner Association CC & Rs and financial stability
****Important**** All contingencies are removed in writing!!!
Step Five: Coast to the Close
1) Review and sign loan documents
2) Transfer any funds necessary to close to escrow
3) Close Escrow and title is recorded
CONGRATULATIONS!!!! YOU HAVE A NEW HOME!!!!
I hope this is helpful to understand the process....obviously this is an overview....but it's really a simple process, and we take things in an orderly manner. One step at a time!
www.great-western-realty.com
Home Buying Process
Step One: Indentify Properties of Interest and Go See Them
1)Preview properties online and on MLS Gateway Website
2)Identify properties that appear to fit criteria
3)Get Financial details and listing background
Step Two: Write Offers on One or More Possible Homes
1)Write offers with no deposit or obligation
2)Recieve counter offers and give them our response
3)Come to an agreement on one great home, or keep looking
Step Three: Open Escrow
1) We are assigned an escrow officer and number
2)Deposit check will be sent to escrow
Step Four: Contingency Period (17 Days) time to explore details of the home
1) Home Inspection
2)Loan Approval
3)Appraisal
4) Seller Disclosures
5) Home Owner Association CC & Rs and financial stability
****Important**** All contingencies are removed in writing!!!
Step Five: Coast to the Close
1) Review and sign loan documents
2) Transfer any funds necessary to close to escrow
3) Close Escrow and title is recorded
CONGRATULATIONS!!!! YOU HAVE A NEW HOME!!!!
I hope this is helpful to understand the process....obviously this is an overview....but it's really a simple process, and we take things in an orderly manner. One step at a time!
www.great-western-realty.com
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